Affordable Rent: HAs Won't Be Forced To Charge High Rents.

Housing associations "will not be forced" to charge rents at 80% of the market rate in order to gain Government grants for new housebuilding, Parliamentary under Secretary of State for CLG Andrew Stunell has said. In order to gain Government grant in the future, Mr Stunell said HAs would have to match fund Government subsidy with private finance. However, the arrangement - which is due to be fleshed out in the Localism Bill - is likely to encourage HAs to charge up to the 80% market rate in order to lever as much finance as possible. When asked about those who would be unable to afford such high rents, Mr Stunell said: "For those in Affordable Rent tenants will still be able to access 100% of housing benefit." However, under the new housing benefit arrangements, which are due to be rolled out from April 2011, depending on the size of their home tenants could lose between £50 and more than £100 a month as a result of new caps. Read more on 24dash.